Iceland Seafood Ltd slipped into the red last year after the downturn and haddock shortages hit profits.

According to accounts filed at Companies House, the subsidiary of Icelandic company Iceland Seafood posted a pre-tax loss of £340,711 for the year to December 2009, compared with a profit of £13,593 the year before. Turnover also fell, by 39% to £20.1m.

ISL's poorer performance was the result of difficult economic conditions in both Iceland (the source of most of its raw material) and the UK, where shoppers had cut spending and shown less interest in its higher-value lines. "ISL had to adjust prices to the new market level and lost money," the directors said.

Turnover and profitability had also been hit by a rise in fish prices, they added, particularly as haddock, its biggest sales item in 2008, was in short supply during 2009. The company supplies a range of seafood to the UK multiples.